DOHA: Qatar offers a positive example of strong leadership and clear polices at a time when the global economy is passing through a period of high instability caused by geopolitical pressures, according to experts.
More than 600 senior finance and banking executives attended The Euromoney Qatar Conference 2016 in Doha, Qatar, where they heard from a range of major speakers on the risks and opportunities facing national, regional and global economies today.
Speakers broadly agreed that a range of factors – including the uncertainty around future trade policies of the incoming Trump administration in the United States, the challenges created by the rise of populism in Europe and particularly the Brexit vote in the UK, plus concerns over China’s debt profile and ‘credit gap’ – are all likely to continue to impact world trade and the global financial sector in 2017.
When combined with continuing subdued oil prices and the on-going instability created by 2010’s Arab Spring on the Mena region, it is likely that global investors will seek a higher risk premium when investing in the region in the coming years.
Senior Qatari leaders outlined the important steps that Qatar has taken to drive positive growth and enhance the country’s position as a role model for sustainable development.
Ali Shareef Al-Emadi, Minister of Finance, State of Qatar, acknowledged the challenges facing developed economies in 2017 and suggested that aligned global financial policies will be necessary to deliver sustained growth.
He pointed to Qatar’s continued success in delivering economic growth even against the backdrop of the fall in oil and gas prices of recent years.
Al-Emadi said: “According to IMF figures, Qatar is forecast to reach an annual growth rate of 3.4 per cent in 2017, which is the highest forecast growth in the GCC. This has been achieved through a number of measures, including an increase in efficiencies in public spending, the growth of the financial sector and a rise in the private sector’s contribution to economic growth. The non-oil sector achieved a growth rate of 5.8 per cent this year, demonstrating the success of our diversification strategy.”
The 2016 National Budget for Qatar reinforces Qatar’s confidence for the future, with dedicated investment in healthcare, education and transportation – along with investment in infrastructure for the 2022 Fifa World Cup – all likely to have a positive effect on the national economy. The Finance Minister said that the total budget committed for the development of key strategic megaprojects stands at QR374 billion ($103 billion), with a further QR46 million set to be invested in 2017.
